Blockchain technology can revolutionize any industry where multiple writers rely on the same data points. Blockchain technology helps companies coordinate information, payments, and processes without a middle man. Whether blockchain technology makes sense for your company depends on the answers to a few questions.
1 – Are multiple parties involved in your transactions?
A company that has multiple partners in a chain of delivery could potentially benefit from blockchain technology. Point-to-point communication works well when only two parties are involved. Involving more than that is where communication chains break down.
Blockchain technology works in these situations by providing verified information to all parties involved. Any changes made to the product, payment, or process being tracked are instantly reflected across the blockchain.
2 – What about shared logic between companies?
Partner companies that work closely together in a supply chain may benefit from blockchain technology. Smart contracts can keep bids hidden but verified among competitors. Multiple partners can operate with the same information that is updated in real-time.
3 – Is security and tamper-proof recording important?
A company that relies on having a secure and tamper-proof record of transactions will benefit from employing blockchain tech. These transactional systems keep a log of each transaction that happens among all parties on the network.
These redundant copies of information make it virtually impossible to tamper with official numbers. Blockchain technology can also be used to certify the validity of certain items — vaccines, wine, and concert memorabilia are just a few examples.
4 – Does your company manage inventory?
Blockchain technology is excellent at tracking inventory as well as other assets. Assets can be represented as digital tokens that can only exist in one location at a time. This tech can help prevent users from copying digital assets like songs, ebooks, and other digital media.
Digital tokenized assets may help insurance companies trust their clients’ storage of valuable assets, too. Non-fungible tokens are increasingly being explored to help prove authenticity and ownership in the art world.
5 – Is transparency important to your organization?
Blockchain technology is designed to be transparent at its core. Everyone involved can follow the production of a product from start to finish. The tech can also be used to build smart contracts for data transferral between companies.